Market Monitor – 13 September 2024

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Market Monitor – 13 September 2024

Jim Griffin
Jim Griffin
Investment Content Manager

Global stock markets bounced back from last week’s heavy losses, with the latest economic data in the United States helping to calm investors’ nerves.

Falling inflation in the US has made it almost certain that the Federal Reserve will cut interest rates next week. Markets also appeared to welcome the measured performance by Democratic candidate, Kamala Harris, in Tuesday’s presidential debate. Forecasts for slowing global demand, meanwhile, drove fresh declines in oil prices: they hit their lowest level since early 2023 at the start of the week.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 1.9% up for the week so far, while the S&P 500 gained 3.5% and moved closer to the all-time highs recorded earlier in the summer. Technology stocks in particular staged a strong recovery on Wednesday after official figures showed the rate of inflation had fallen to 2.5%, its lowest level since the start of 2021. The slowing pace of price rises and weakness in the US labour market has set the stage for the Fed to reduce borrowing costs, but the size of next week’s cut remains unclear.

UK

In the UK, the FTSE 100 closed on Thursday 0.8% up for the week so far, lagging other major markets after weaker oil prices weighed on major energy companies. Data also showed the British economy had failed to grow for a second consecutive month in July. In addition, statistics highlighted a slowdown in wage growth and a fall in new job vacancies, although reports suggested the UK economy is forecast to return to growth in the months ahead. The Bank of England is expected to leave interest rates unchanged at its September meeting, with markets currently pricing in one more cut before the end of 2024.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 1.9% for the week, while France’s CAC 40 gained 1.1%. The European Central Bank continued to set the pace in terms of monetary loosening, cutting rates for the second time this year on Thursday. The ECB also cut its eurozone growth forecasts – an unsurprising move given recent lacklustre GDP data. A major investment bank predicted the German economy would contract for a third consecutive quarter between July and September, while investor confidence across the euro area was also reported to have declined. European Union officials called for stimulus measures to help address growth and productivity issues in the bloc.

Asia

In Asia, the Hang Seng index in Hong Kong fell 1.2% after statistics showed that inflation in China continues to run at a low level, reflecting sluggish domestic demand. The data was backed up later in the week by unexpectedly weak import figures. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 1.2% as the yen eased against the dollar on hopes that the Fed would cut rates by only 0.25% rather than 0.5% next week. Stocks in Tokyo had struggled at the start of the week following last Friday’s Wall Street slump and comments from a Bank of Japan official that further interest rate hikes were in the pipeline.

September 6
September 12
Change (%)
FTSE 100
8175.4
8241.0
0.8
FTSE 250
20499.3
20695.8
1.0
S&P 500
5408.4
5595.8
3.5
Dow Jones
40345.4
41096.8
1.9
DAX
18301.9
18507.6
1.1
CAC 40
7352.3
7435.1
1.1
ACWI
802.6
821.6
2.4
Hong Kong Hang Seng
17444.3
17240.4
-1.2
Nikkei 225
36391.5
36833.3
1.2

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 12 September 2024.

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Market Monitor – 13 September 2024

Important information

This document is intended for informational purposes only and should not be considered representative of any particular investment. This should not be considered an offer or solicitation to buy or sell any securities or other financial instruments, or to provide investment advice or services. Investing involves risk including the risk of loss of principal. Your capital is at risk.  Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The value of investments is not guaranteed, and therefore an investor may not get back the amount invested. International investing involves certain risks and volatility due to potential political, economic or currency fluctuations and different financial and accounting standards. The securities included herein are for illustrative purposes only, subject to change and should not be construed as a recommendation to buy or sell. Securities discussed may or may not prove profitable. The views expressed are as of the date given, may change as market or other conditions change and may differ from views expressed by other Columbia Threadneedle Investments (Columbia Threadneedle) associates or affiliates. Actual investments or investment decisions made by Columbia Threadneedle and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. This document and its contents have not been reviewed by any regulatory authority.

 

In the UK: issued by Threadneedle Asset Management Limited, registered in England and Wales, No. 573204. Registered Office: Cannon Place, 78 Cannon Street, London EC4N 6AG. Authorised and regulated in the UK by the Financial Conduct Authority.

 

In Australia: Issued by Threadneedle Investments Singapore (Pte.) Limited [“TIS”], ARBN 600 027 414.  TIS is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cth) and relies on Class Order 03/1102 in respect of the financial services it provides to wholesale clients in Australia. This document should only be distributed in Australia to “wholesale clients” as defined in Section 761G of the Corporations Act. TIS is regulated in Singapore (Registration number: 201101559W) by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289), which differ from Australian laws.

 

In Singapore: Issued by Threadneedle Investments Singapore (Pte.) Limited, 3 Killiney Road, #07-07, Winsland House 1, Singapore 239519, which is regulated in Singapore by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289). Registration number: 201101559W. This advertisement has not been reviewed by the Monetary Authority of Singapore.

 

In Hong Kong: Issued by Threadneedle Portfolio Services Hong Kong Limited 天利投資管理香港有限公司. Unit 3004, Two Exchange Square, 8 Connaught Place, Hong Kong, which is licensed by the Securities and Futures Commission (“SFC”) to conduct Type 1 regulated activities (CE:AQA779). Registered in Hong Kong under the Companies Ordinance (Chapter 622), No. 1173058.

 

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.     

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Important information

This document is intended for informational purposes only and should not be considered representative of any particular investment. This should not be considered an offer or solicitation to buy or sell any securities or other financial instruments, or to provide investment advice or services. Investing involves risk including the risk of loss of principal. Your capital is at risk.  Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The value of investments is not guaranteed, and therefore an investor may not get back the amount invested. International investing involves certain risks and volatility due to potential political, economic or currency fluctuations and different financial and accounting standards. The securities included herein are for illustrative purposes only, subject to change and should not be construed as a recommendation to buy or sell. Securities discussed may or may not prove profitable. The views expressed are as of the date given, may change as market or other conditions change and may differ from views expressed by other Columbia Threadneedle Investments (Columbia Threadneedle) associates or affiliates. Actual investments or investment decisions made by Columbia Threadneedle and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. This document and its contents have not been reviewed by any regulatory authority.

 

In the UK: issued by Threadneedle Asset Management Limited, registered in England and Wales, No. 573204. Registered Office: Cannon Place, 78 Cannon Street, London EC4N 6AG. Authorised and regulated in the UK by the Financial Conduct Authority.

 

In Australia: Issued by Threadneedle Investments Singapore (Pte.) Limited [“TIS”], ARBN 600 027 414.  TIS is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cth) and relies on Class Order 03/1102 in respect of the financial services it provides to wholesale clients in Australia. This document should only be distributed in Australia to “wholesale clients” as defined in Section 761G of the Corporations Act. TIS is regulated in Singapore (Registration number: 201101559W) by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289), which differ from Australian laws.

 

In Singapore: Issued by Threadneedle Investments Singapore (Pte.) Limited, 3 Killiney Road, #07-07, Winsland House 1, Singapore 239519, which is regulated in Singapore by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289). Registration number: 201101559W. This advertisement has not been reviewed by the Monetary Authority of Singapore.

 

In Hong Kong: Issued by Threadneedle Portfolio Services Hong Kong Limited 天利投資管理香港有限公司. Unit 3004, Two Exchange Square, 8 Connaught Place, Hong Kong, which is licensed by the Securities and Futures Commission (“SFC”) to conduct Type 1 regulated activities (CE:AQA779). Registered in Hong Kong under the Companies Ordinance (Chapter 622), No. 1173058.

 

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.     

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